COMMERCIAL LENDING - SBA Loans
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Real Estate Loan 504 Program |
A general word on SBA loans: East West Bank's Small Business Administration (SBA) Loan Department is committed to helping small businesses obtain the financing needed to expand and grow. East West Bank is a SBA Preferred Lender. |
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We offer customers the personalized expertise and professional
guidance that only East West Bank can provide. With over 30 years experience
and $11.9 billion in assets, having East West Bank as your long-term partner
gives you the strongest independent bank in California as a trusted ally.
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What it is: |
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The 504 Loan Program allows the small business owner/user to purchase an industrial or commercial building at market interest rates with only a ten percent down payment or equity injection. The loan proceeds may be used to purchase or remodel an existing building or to construct a new facility. |
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| Typical Structure: |
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The bank is in the first trust deed position for 50% of the total project cost. |
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Certified Development Corporation (CDC) is in the second trust deed position for 40% of the total project (packaging and servicing will be handled by the CDC). The bank will provide short-term financing until the debenture is sold for the second T.D. by the CDC/SBA. |
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Borrower injects 10% of total project costs. |
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Borrowing Limit: |
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You can borrow up to 90% of the project cost or appraised value of the property, whichever is less. |
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Terms, Rates and Fees: |
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Bank portion can be amortized to a maximum of 30 years with a 10 year to 15 year call according to the current market rate. |
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CDC/SBA portion will be fully amortized over 20 years at a long-term treasury borrowing rate and is fixed and fully amortized for the term of the loan (declining prepayment penalty for first 10 years). |
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Rate will be fixed for 20 years. |
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Eligibility Requirements: |
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For a CDC/SBA second T.D. loan, the borrower must create or retain one job opportunity for every $50,000 of the CDC/SBA loan. |
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Property must be occupied by the borrowing business 51% or more. In case of construction, borrower must occupy 66% or more and will occupy 100% within a reasonable period. |
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For manufacturing business, please call the SBA Department for details at 888-245-1756. |
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The business's net-worth cannot exceed $6 million, and the after-tax net profit for the last two years may not exceed $2 million. |
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The subject business must be considered under the eligibility requirements of SBA guaranteed loan program. |
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| How to Apply: |
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It's easy! When applying for an SBA loan - as with any loan - you are asked to fill out a standardized application and provide specific documentation. At East West Bank , we provide a simplified package for the process, will work with your accountant, and do all of the analysis, packaging, and SBA interfacing for you. |
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Turnaround Time: |
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A typical SBA 504 undergoes two approval processes. First the Bank reviews the application. Once the Bank approves it, the application is submitted to the CDC for approval and the accompanying SBA approval. The complete procedure from application submission to disbursement of funds takes approximately 45 to 90 days, depending on the complexity of the loan. |
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| A final note: At East West Bank, we serve our customers with promptness and expertise.
We not only believe an SBA loan is a great source of funding for small businesses and start-ups, but we put that belief into action. We're extremely knowledgeable in the field, and try to match our customers' financial needs to the most appropriate program available.
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GET STARTED NOW: To speak with our Small Business Lending specialists in more detail, submit this online form or call
888-245-1756. |
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